UMECO PLC 20 January 2006 20 January 2006 PRESS RELEASE UMECO SIGNALS EXPANSION IN ASIA WITH XI'AN YANLIANG AIRCRAFT MANUFACTURING BASE AGREEMENT IN CHINA UMECO plc ("UMECO"), the leading international provider of value-added services, components and composite materials to the aerospace, defense and other industries, is pleased to announce that its UMECO Component's division has signed a Memorandum of Understanding with Xi'an Yanliang Aircraft Manufacturing Base (CAIB) to establish a Foreign Invested Commercial Enterprise (FICE) at the base during 2006. The company, to be known as Ulogistics (Xi'an) Trading Limited, is being created to respond to the demand of its European and North American customers for product and supply chain services in China. Ulogistics (Xi'an) Trading Limited will also seek to provide similar services to the buoyant domestic aerospace market centred in the Shaanxi region. Located 50km from Xi'an, a city of 3 million people and one of the main centres for aerospace in China, the CAIB has attracted a number of foreign investors since it started operation in March 2005. Foreign companies, such as UMECO, have been impressed with its innovation, highly efficient services and infrastructure, and preferred status for aerospace development in China. The CAIB aims to produce an annual output of RMB20 billion (£1.4bn) by 2010 and employ over 100,000 people. Jason Crabtree, Chief Executive of UMECO Components, commented: "This is a very important development for UMECO Components, and we are delighted to have reached this agreement with CAIB. The expansion into China will allow us to better serve our existing customers in the Asia Pacific region and to expand our offering to the rapidly growing domestic aerospace market in the region. We are in the final planning stages of the expansion and would hope to have Ulogistics (Xi'an) Trading Limited fully operational in the next six to nine months." - Ends - For further information, please contact: UMECO plc Clive Snowdon, Chief Executive 01926 331800 Hogarth Partnership Ltd John Olsen / Barnaby Fry 020 7357 9477 (Notes to editors attached). Notes to editors UMECO plc is a leading international provider of value-added distribution services and composite materials primarily to the aerospace & defence, automotive, motorsport, and wind turbine industries. Listed on the London Stock Exchange, UMECO had turnover of £242.4 million in the year to 31 March 2005. UMECO is managed through three divisions:- UMECO Components - a leading international provider of value-added distribution and supply chain outsourcing services to customers in the aerospace & defence market. With its specialisation in the supply of small components and sophisticated IT systems, its growing global customer base can enjoy significant operational, cost and working capital benefits. Customers include Rolls-Royce plc, BAE SYSTEMS, Snecma Groupe, Parker Aerospace, Goodrich Aerospace, Bombardier, Lockheed Martin and the US Department of Defense. UMECO Composites - a provider of a complete range of advanced composite materials and specialist chemical products principally to the aerospace, motorsport, automotive and wind energy markets. A growing range of value-added outsourcing services is provided to major customers. Customers include Boeing, Airbus, BAE SYSTEMS, Goodrich Aerostructures, British Airways, Lufthansa Technik, a number of manufacturers of high performance super cars and all the Formula 1 teams. UMECO Repair and Overhaul - a provider of a comprehensive accessory repair and installation service to operators of fixed and rotary wing aircraft ranging in size from executive jets through to a Boeing 747. Customers include British Airways, KLM, Swiss, Alitalia Express, Bristow Helicopters, BAE SYSTEMS, Saab Aircraft and Pratt & Whitney. This information is provided by RNS The company news service from the London Stock Exchange